Best Buy's (BBY) "Neutral" Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed its “Neutral” rating on Best Buy and maintained a $95 price target, implying approximately 5.15% upside from the prior close.
• Best Buy shares opened at $90.35, near their 12-month high, after the company beat quarterly earnings and revenue expectations with EPS of $1.47 and revenue of $9.78 billion.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $85.40; insiders have sold 500,000 shares over the past 90 days, while institutions own 80.96% of the stock.

Best Buy (NYSE:BBY - Get Free Report)'s stock had its "neutral" rating reaffirmed by investment analysts at DA Davidson in a report issued on Tuesday, Benzinga reports. They currently have a $95.00 price target on the technology retailer's stock. DA Davidson's price objective indicates a potential upside of 5.15% from the company's previous close.

BBY has been the topic of several other reports. Citigroup raised their price target on Best Buy from $79.00 to $88.00 and gave the company a "neutral" rating in a research report on Thursday, August 13th. Truist Financial set a $100.00 price target on Best Buy in a report on Thursday, August 27th. Evercore raised their price objective on shares of Best Buy from $65.00 to $85.00 in a research note on Friday, May 29th. Loop Capital cut shares of Best Buy from a "buy" rating to a "hold" rating and set a $82.00 target price for the company. in a research note on Monday, July 13th. Finally, Jefferies Financial Group lowered shares of Best Buy from a "buy" rating to a "hold" rating and decreased their price target for the stock from $89.00 to $85.00 in a research report on Wednesday, August 5th. Six equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $85.40.

Best Buy Stock Up 0.1%

Shares of BBY stock opened at $90.35 on Tuesday. The stock's 50 day simple moving average is $84.29 and its 200 day simple moving average is $72.21. Best Buy has a twelve month low of $55.10 and a twelve month high of $91.26. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.41 and a current ratio of 1.12. The company has a market capitalization of $19.04 billion, a price-to-earnings ratio of 15.03, a PEG ratio of 2.25 and a beta of 1.28.

Best Buy (NYSE:BBY - Get Free Report) last announced its quarterly earnings results on Thursday, August 27th. The technology retailer reported $1.47 EPS for the quarter, beating the consensus estimate of $1.39 by $0.08. Best Buy had a return on equity of 48.14% and a net margin of 3.01%.The company had revenue of $9.78 billion for the quarter, compared to the consensus estimate of $9.59 billion. During the same quarter last year, the company posted $1.28 earnings per share. The company's revenue for the quarter was up 3.6% compared to the same quarter last year. Best Buy has set its FY 2027 guidance at 6.700-6.900 EPS. As a group, research analysts predict that Best Buy will post 6.81 EPS for the current year.

Insiders Place Their Bets

In other news, Chairman Richard Schulze sold 224,705 shares of the company's stock in a transaction that occurred on Friday, June 26th. The stock was sold at an average price of $78.10, for a total value of $17,549,460.50. Following the sale, the chairman directly owned 10,430,936 shares in the company, valued at approximately $814,656,101.60. This represents a 2.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Insiders sold 500,000 shares of company stock worth $39,065,226 over the last 90 days. 0.50% of the stock is currently owned by insiders.

Institutional Trading of Best Buy

Large investors have recently bought and sold shares of the stock. MV Capital Management Inc. bought a new position in shares of Best Buy during the fourth quarter valued at $25,000. Palisade Asset Management LLC bought a new position in Best Buy during the 3rd quarter valued at about $25,000. Hillsdale Investment Management Inc. bought a new position in Best Buy during the 4th quarter valued at about $29,000. Atlas Capital Advisors Inc. acquired a new position in Best Buy in the fourth quarter valued at about $32,000. Finally, Bayban bought a new stake in Best Buy during the fourth quarter worth about $33,000. 80.96% of the stock is currently owned by institutional investors.

Best Buy Company Profile

Best Buy Co, Inc is a leading North American consumer electronics retailer that sells a broad range of products including computers, mobile phones, televisions and home theater systems, major appliances, smart-home devices, gaming hardware and software, wearables and related accessories. The company operates through a mix of large-format stores, smaller specialty locations and an e-commerce platform, offering national and private-brand merchandise from major consumer-technology manufacturers as well as third-party sellers.

Beyond product retailing, Best Buy provides a suite of services aimed at installation, repair and ongoing technical support.

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